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(35 ILCS 5/211)
Economic Development for a Growing Economy Tax Credit.
For tax years beginning on or after January 1, 1999, a Taxpayer
who has entered into an Agreement (including a New Construction EDGE Agreement) under the Economic Development for a Growing
Economy Tax Credit Act is entitled to a credit against the taxes imposed
under subsections (a) and (b) of Section 201 of this Act in an amount to be
determined in the Agreement. If the Taxpayer is a partnership or Subchapter
S corporation, the credit shall be allowed to the partners or shareholders in
accordance with the determination of income and distributive share of income
under Sections 702 and 704 and subchapter S of the Internal Revenue Code.
The Department, in cooperation with the Department
of Commerce and Economic Opportunity, shall prescribe rules to enforce and
administer the provisions of this Section. This Section is
exempt from the provisions of Section 250 of this Act.
The credit shall be subject to the conditions set forth in
the Agreement and the following limitations:
(1) The tax credit shall not exceed the Incremental
Income Tax (as defined in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act) with respect to the project; additionally, the New Construction EDGE Credit shall not exceed the New Construction EDGE Incremental Income Tax (as defined in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act).
(2) The amount of the credit allowed during the tax
year plus the sum of all amounts allowed in prior years shall not exceed 100% of the aggregate amount expended by the Taxpayer during all prior tax years on approved costs defined by Agreement.
(3) The amount of the credit shall be determined on
an annual basis. Except as applied in a carryover year pursuant to Section 211(4) of this Act, the credit may not be applied against any State income tax liability in more than 10 taxable years; provided, however, that (i) an eligible business certified by the Department of Commerce and Economic Opportunity under the Corporate Headquarters Relocation Act may not apply the credit against any of its State income tax liability in more than 15 taxable years and (ii) credits allowed to that eligible business are subject to the conditions and requirements set forth in Sections 5-35 and 5-45 of the Economic Development for a Growing Economy Tax Credit Act and Section 5-51 as applicable to New Construction EDGE Credits.
(4) The credit may not exceed the amount of taxes
imposed pursuant to subsections (a) and (b) of Section 201 of this Act. Any credit that is unused in the year the credit is computed may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year, except as otherwise provided under paragraph (4.5) of this Section. The credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, the earlier credit shall be applied first.
(4.5) The Department of Commerce and Economic
Opportunity, in consultation with the Department of Revenue, shall adopt rules to extend the sunset of any earned, existing, or unused credit as provided for in Section 605-1055 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
(5) No credit shall be allowed with respect to any
Agreement for any taxable year ending after the Noncompliance Date. Upon receiving notification by the Department of Commerce and Economic Opportunity of the noncompliance of a Taxpayer with an Agreement, the Department shall notify the Taxpayer that no credit is allowed with respect to that Agreement for any taxable year ending after the Noncompliance Date, as stated in such notification. If any credit has been allowed with respect to an Agreement for a taxable year ending after the Noncompliance Date for that Agreement, any refund paid to the Taxpayer for that taxable year shall, to the extent of that credit allowed, be an erroneous refund within the meaning of Section 912 of this Act.
If, during any taxable year, a taxpayer ceases
operations at a project location that is the subject of that Agreement with the intent to terminate operations in the State, the tax imposed under subsections (a) and (b) of Section 201 of this Act for such taxable year shall be increased by the amount of any credit allowed under the Agreement for that project location prior to the date the taxpayer ceases operations.
(6) For purposes of this Section, the terms
"Agreement", "Incremental Income Tax", "New Construction EDGE Agreement", "New Construction EDGE Credit", "New Construction EDGE Incremental Income Tax", and "Noncompliance Date" have the same meaning as when used in the Economic Development for a Growing Economy Tax Credit Act.
(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21; 102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)